Goodrich Petroleum Corp. has filed for chapter 11 in a U.S. bankruptcy court to implement financial restructuring, Bloomberg News reported today. “Through the chapter 11 restructuring, the company will eliminate approximately $400 million in debt from its balance sheet, substantially de-leverage its capital structure and strategically position the company for long-term performance in an anticipated improving commodity price environment,” Houston-based Goodrich said. Goodrich earlier this month reached an agreement with creditors to use its "best efforts" to file for chapter 11 with a pre-packaged plan to reorganize and emerge from court as an operating business. That agreement came after the company’s debt-for-equity exchange offer failed to gain enough traction among debt holders. On March 16, Goodrich delayed releasing its annual report, citing a large loss that auditors have determined may affect the company’s ability to operate as a going concern. The loss comes "mainly as a result of substantial impaired asset writedowns," Goodrich said in the filing. Read more.
Has the final shoe dropped for the E&P industry? A session this afternoon at ABI's 34th Annual Spring Meeting features experts discussing energy industry distress.
Get a better understanding of what happens when an oil, gas or other natural resources company goes bankrupt. Pre-order your copy of ABI's revised and expanded When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy, Second Edition. Print copies are available at the onsite bookstore at the Annual Spring Meeting.
